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Valuing Ecological Improvements in the Chesapeake Bay and the Importance of Ancillary Benefits

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  • Moore, Chris
  • Guignet, Dennis
  • Dockins, Chris
  • Maguire, Kelly B.
  • Simon, Nathalie B.

Abstract

Reducing the excess nutrient and sediment pollution that is damaging habitat and diminishing recreational experiences in coastal estuaries requires actions by people and communities that are within the boundaries of the watershed but may be far from the resource itself, thus complicating efforts to understand tradeoffs associated with pollution control measures. Such is the case with the Chesapeake Bay, one of the most iconic water resources in the United States. All seven states containing part of the Chesapeake Bay Watershed were required under the Clean Water Act to submit detailed plans to achieve nutrient and sediment pollution reductions. The implementation plans provide information on the location and type of management practices making it possible to project not only water quality improvements in the Chesapeake Bay but also improvements in freshwater lakes throughout the watershed, which provide important ancillary benefits to people bearing the cost of reducing pollution to the Bay but unlikely to benefit directly. This paper reports the results of a benefits study that links the forecasted water quality improvements to ecological endpoints and administers a stated preference survey to estimate use and nonuse value for aesthetic and ecological improvements in the Chesapeake Bay and watershed lakes. Our results show that ancillary benefits and nonuse values account for a substantial proportion of total willingness to pay and would have a significant impact on the net benefits of pollution reduction programs.

Suggested Citation

  • Moore, Chris & Guignet, Dennis & Dockins, Chris & Maguire, Kelly B. & Simon, Nathalie B., 2018. "Valuing Ecological Improvements in the Chesapeake Bay and the Importance of Ancillary Benefits," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 9(1), pages 1-26, April.
  • Handle: RePEc:cup:jbcoan:v:9:y:2018:i:01:p:1-26_00
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    Cited by:

    1. Dennis Guignet & Matthew T. Heberling & Michael Papenfus & Olivia Griot, 2022. "Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis," Land Economics, University of Wisconsin Press, vol. 98(2), pages 191-218.
    2. Moeltner, Klaus & Puri, Roshan & Johnston, Robert J. & Besedin, Elena & Balukas, Jessica & Le, Alyssa, 2022. "Locally Weighted Meta-Regression and Benefit Transfer," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322359, Agricultural and Applied Economics Association.
    3. V Kerry Smith & W. Douglass Shaw & Michael P. Welsh & Chris Dixon & Lisa Donald, 2022. "A New Strategy for Benefits Transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 155-178, January.
    4. repec:ags:aaea22:335992 is not listed on IDEAS

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